Why Dangote Adjusted PMS Ex-depot Price
Dangote Refinery has clarified that its recent adjustment in the ex-depot price of Premium Motor Spirit (PMS) from N899.50 to N950 per litre is directly linked to the significant increase in global crude oil prices.
The refinery announced that all its partners, including Ardova, Heyden and MRS Holdings, would supply petrol at a nationwide retail price of N970 per litre.
The partners noted that they had absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT).
According to Dangote, as crude oil remains the primary input in PMS production, any fluctuation in its international price inevitably impacts the cost of the finished product.
In a statement addressing the concerns, Dangote Refinery noted that while global crude prices surged by 15 per cent with Brent Crude rising from $70 to $82 per barrel within days, the refinery limited its ex-depot price adjustment to just five per cent.
The refinery added that it had maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre, noting the refinery’s commitment to offering the best value with guaranteed quality to its customers.
The statement reads, “Dangote Refinery has absorbed approximately 50 per cent of the cost increases in the international oil market. This is due to our unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remain central to our mission. If Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of PMS would be approximately N1,150 to N1,200 per litre in some locations, compared to the present N970 per litre,” it stated.
Emphasising its commitment to providing reliable, top-quality petrol to the Nigerians at competitive prices, as it continues to prioritise the interests of Nigerians in challenging times, the refinery noted its push to shield consumers from the full impact of global price volatility, while adapting to evolving market conditions.
In the interest of transparency and good governance, The Guardian gathered, Dangote Refinery will commence publishing its ex-depot price, ex-vessel price as well as pump price weekly, so that consumers are not exploited.
“We would like to express our gratitude to President Bola Tinubu for the introduction of the visionary Naira-for-Crude Initiative. This ground-breaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating the Nigerian consumers from the volatility of the global oil market. We sincerely appreciate the continued trust and support of Nigerians as we strive to deliver the best value for their money and contribute to the development of a self-sufficient economy that is resilient to international price fluctuations,” it stated.
